WASHINGTON, DC (January 12, 2026) |
The Defense Credit Union Council (DCUC), on behalf of credit unions nationwide, issued a statement late yesterday in response to President Trump’s social media post calling for a one-year, nationwide 10% cap on credit card interest rates beginning January 20. The proposal, announced without details on enforcement or implementation, raises serious concerns for military families and working Americans who rely on credit unions for responsible access to credit.
Following the President’s statement, DCUC sent a prompt letter to the House Financial Services Committee and Senate Banking Committee, as well as a separate letter to President Trump, outlining these concerns. In the letter, DCUC President and CEO Anthony Hernandez, Colonel, USAF (Ret.), reiterated that credit unions already operate under congressionally mandated limits and serve more than 40 million military-affiliated members through a not-for-profit, member-owned model.
Rather than imposing a blanket national cap, DCUC urged policymakers to pursue targeted consumer protections, including expanded financial education, support for responsible lending, and direct enforcement actions against predatory actors.
“DCUC stands ready to work with Congress and the Administration to advance policies that protect consumers without penalizing the institutions that have consistently put people first,” Hernandez says. “Credit unions are indispensable partners in supporting military financial readiness and the economic stability of working Americans.”
DCUC has a long and well-documented history of opposing blanket interest-rate cap proposals, including similar 10% caps raised in the past year, and DCUC warns how these proposals can produce significant unintended consequences.
“Credit unions already operate under a statutory interest-rate cap that is significantly lower than what applies to banks and many other financial institutions,” says Jason Stverak, Chief Advocacy Officer of DCUC. “That cap has existed for decades and reflects the credit union mission of putting people over profits, not maximizing shareholder returns.”
“A rigid federal cap would likely reduce access to credit by limiting credit unions’ ability to serve higher-risk borrowers,” Stverak says. “Many credit unions would be forced to tighten underwriting standards or scale back credit card and small-dollar lending altogether. That outcome would disproportionately affect young servicemembers, junior enlisted personnel, and lower-income members who do not yet have prime credit profiles.”
Credit unions routinely provide small-dollar loans, emergency credit, deployment-related relief, and short-term financial assistance to servicemembers facing unexpected expenses.
“Under an arbitrary 10% cap, many of these critical services could become unsustainable,” Stverak added. “Military families deserve policies that strengthen their financial security, not policies that unintentionally jeopardize it by limiting access to trusted, affordable credit.”
DCUC also cautioned that restricting credit union lending could push vulnerable consumers toward predatory lenders.
“Limiting the ability of mission-driven institutions to price loans according to risk does not eliminate the need for credit. It simply shifts borrowers toward less regulated, higher-cost alternatives outside the credit union system.”
Beyond lending, DCUC emphasized that interest-rate cap proposals threaten the broader service model credit unions provide, including financial counseling, fraud protection, and tailored support for military families. A one-size-fits-all cap could undermine the sustainability of these services.
DCUC will continue its advocacy on this issue and remain actively engaged with the Administration and congressional leadership as discussions around interest-rate caps and consumer credit policy progress.